Monday, December 7, 2009

10 Key Factors When Evaluating a Home Business

Lots of people are interested in home businesses to make a little extra cash, to help pay the monthly bills, or to create financial freedom and security. Either way, an internet business can help you.

There are a few good ones, but unfortunately, there are a lot of "scams" - so be sure to do your homework. The trick is to find a good one; don't waste time or money chasing empty promises or pipe dreams.

I used the following questionnaire to choose my internet marketing business - a similar process should work for you as well.

1.  Legal?

Remember - there's no free lunch. If they're promising something for nothing, look out.  If in doubt, check with the Better Business Bureau.

2.  Sought After Product?

Is there sufficient demand for the product?  You'll need a large potential market.  Can you make money from the market? Is it big enough? Can it afford your product?

What we want is a large, hungry, market that will buy from us now; and buy additional products later as well.

3.  High Profits?

Is there enough profit to cover your selling costs?  Expenses will eat away at your profit margin - be sure to consider them.  Be sure to consider the impact of advertising and start-up expenses on your profits.

4.  How Much Competition?

Can you compete effectively on price?

Similarly, it is very difficult to make a sale if you can't even get your potential customer's attention.

5.  Adequate Commissions?

Will the proposed commission plan require an army of down line members in order for you to make any profit?  Could that really happen?

Is the proposed commission reasonable? Will you get paid fairly for your work?

6.  Labor Intensive?

I'm looking for a business that will be able to run on autopilot after start-up.  I'm ready to "semi-retire"; I want a business that will be largely independent of my personal time and energy.

The best home businesses I've seen have systems and processes that will work for you 7x24x365 – whether you're spending the day at the beach with your kids, laid up in the hospital, or sailing around the world.

7.  Qualified Traffic?

Businesses need lots of qualified prospects to succeed.  For online businesses, the key is targeted traffic.

Will your up line help send you quality traffic?

8.  Generaous Training?

Unless you're already an expert in your potential business, you'll need training.  Don't try to muddle along on your own.

So, another key is to make sure that your sponsor provides adequate training.

9.  Expert Technical Support?

All businesses today require computers somewhere along the way.  For online businesses, that computer will likely be yours.

For internet marketing businesses, a lot of the technical support will be needed up-front, getting your system set up before you can even start doing the business.  You'll need good technical support.

10.  Follow-On Customer / Sales Support?

Regardless of the product you sell, there will likely be problems, returns, changes, upgrades, etc. involved.  Back-office support, including customer support will be important to your success.

Prioritize businesses that also include customer and sales support.  Any help I can get from my upline to close the sales will increase my profits.

Winners act; losers don't.

So, if you want to join the winners rather than losers, use this checklist, and then. Don't wait, act now to secure your future.

No comments:

Post a Comment